Entering form 1098-t does not show the amount I paid for classes and tuition.

[AnnetteB]

If you paid a different amount for tuition than what is shown on your Form 1098-T, there is a way to enter this information for the calculation of your education tax credit. 

You will enter the information from your Form 1098-T and the amount that you actually paid for tuition. 

There is a link on the screen in TurboTax where you enter the information from the Form 1098-T to expand that page and enter the actual amounts paid for tuition. 

You will find the link directly under the entry for Box 2 of the 1098-T.  It says “What if this is not what I paid to this school?” in blue letters.  Click that link and an additional box will open up to allow you to enter the actual amounts that were paid for tuition. 

As you progress through the education section of your tax return, there will be additional screens to enter amounts paid for books, supplies, and other school expenses. 

As a visual reference, click on the thumbnail pictures below.

[robert1208]

This problem still exists with TurboTax.  I am using TurboTax home and business (2022).  The program is as clear as mud in explaining discrepancies between what the 1098-T says on line 1, and what we paid for tuition.  Apparently, our college (Purdue), will only put an amount in box one of the 1098-T if the tuition is billed and paid for in the same year.  In our case, my son's spring tuition due bill was issued in December 2021, but paid in January 2022. Since he was a senior and had no other bills after the spring semester, line one on the 1098-T was left blank.  TurboTax did not seem to explain very well how to adjust the tuition paid as it flows to form 8863-page 2 in an easy-to-understand way. 

I've noticed several items thru the years that there are poor explanations in TurboTax as to how to enter data.   This then requires some research and time to enter correctly.  The tax forms are correct once the data is entered according to TurboTax's methods.  TurboTax needs to work on improving how to explain these nuances.  In this case, one must know the outcome of entries (i.e., know something about tax code) to immediately notice that an entry is not getting the correct result.  Since I had only taken the American Opportunity Tax credits in 3 previous years, getting this right effected the $2500 American Opportunity Tax Credit for me.  Coordinating with the 529 accounts is confusing enough.

Get this better-defined/ better explained in TurboTax please. 

[AmyC]

The IRS understands tuition is often paid in December for spring semester and changed the rules on that a few years ago. You will need to enter the tuition along with the books and other expenses when you reach the Education Expenses Summary. 

Since you have a 529 and understand the value of the AOTC, please see another post of mine here for more details of the 529 exceeding college expenses. Also, see Pub 970 for more information on Education including the AOTC credit. For 2022, the income phaseout is $80,000-$90,000 or for MFJ $160,000-$180,000.

@robert1208

[MxR]

If I go the route of “what if this is not what i paid to the school?” do I have to ask my school for a correction 1098t form to send to the IRS? Or simply leave the form as is? Also do I report the tuition paid out of pocket in the books and other expenses or do I only add it to the what if box? @AnnetteB 

[Hal_Al]

Q. If I go the route of “what if this is not what i paid to the school?” do I have to ask my school for a correction 1098t form to send to the IRS? 

A. No. Leave it as is.  What you enter in TT is not sent to the IRS. It is only used to do the calculations for the credit. 

Q. Also do I report the tuition paid out of pocket in the books and other expenses or do I only add it to the what if box? 

A. You only enter it once.  Which place depends on what it was you paid for; tuition in the what if place, books in the books place.